A beginner question: I'm trying to use this spreadsheet to estimate my net positive cash flow each month. Would that be line 127 ("available for taxable investment") or line 140 ("after-tax investable")? What's the difference between those two items?

I'm trying to use this spreadsheet to estimate my net positive cash flow each month. Would that be line 127 ("available for taxable investment") or line 140 ("after-tax investable")? What's the difference between those two items?

They should be the same number, reached by different groupings of income and expenses. In the current version they may differ by the pre-tax commuter amount, but that has been fixed for the next update.

Thanks very much for the reply -- the numbers do indeed differ by the pre-tax commuter amount.

So thinking in terms of how much "extra" money you have available each month, the final number is ultimately somewhere in between those 2 numbers? The commuter money is actually being spent, but you're getting an x% discount on the spending, applied later (with x = whatever your total tax percentage is)? Is that right?

Thanks MDM. I was actually using the "pre-tax commuter" amount as the place to enter my business deductions (I'm self employed) - is there a better cell to do that in?

Thanks again for your help, if this is getting too specific for a general thread, I can message you instead..

Seems generic enough. Cell B24 is for net business income. If you want to do a more detailed calculation in the spreadsheet itself, you could unprotect the 'Calculations' sheet, do your business income and expenses calculations in some currently-blank cells (e.g., cols A-M, row 220 and below), and set B24 equal to the result. See www.excel1040.com for what may be the most detailed federal income tax spreadsheet available if you want some ideas....

Just downloaded the cash flow spread sheet and started to fill it out. I just started a new job and don't contribute to Social Security because of CalPERS. Is there a way to disable that cell on the Calculation Tab?

Just downloaded the cash flow spread sheet and started to fill it out. I just started a new job and don't contribute to Social Security because of CalPERS. Is there a way to disable that cell on the Calculation Tab?

Yes.

Unprotect the sheet, then edit or delete the formula in cell B43. E.g., change 0.062 to 0.

Working on writing up my case study and I'm not sure how to handle a few situations. I recently started working for a public agency where I have access to a CalPERS pension, a 457b and the Public Service Student Loan Forgiveness Program(PSLF) and REPAYE. I've got private and Federal student loans. I've got about $44k in student loans that are eligible for PSLF at an avg rate of 4.8%. Since I had very low income last year due to being in school, my current payments for the next year or so are $0, thanks to REPAY. Using the repayment calculator on Studentloans.gov I get the estimates below, which assumes a 5% income growth annually:

SO my question is how to account for the effective cost of this loan in the Case Study Cash FLow to FI spreadsheet that folks use here? Should I just take the actual amount paid/ 120 payments back out the interest rate? Or use an interest rate of 0%? I want to try and make the FI projection as accurate as possible. I've got some other questions about how to account for the CalPERS, but that can wait for another post.

SO my question is how to account for the effective cost of this loan in the Case Study Cash FLow to FI spreadsheet that folks use here? Should I just take the actual amount paid/ 120 payments back out the interest rate? Or use an interest rate of 0%? I want to try and make the FI projection as accurate as possible. I've got some other questions about how to account for the CalPERS, but that can wait for another post.

Definitely not an interest rate of 0%.

Unless you'd like to modify the spreadsheet formulas - always possible! :) - you'll have a tradeoff between the accuracy of the SL interest deduction vs. the time to FI calculation.

Realistically, in most cases your SL repayment accuracy will be well within the likely error estimating future investment returns, expenses, and income, so don't sweat this too much. Doing "actual amount paid/ 120 payments [and] back out the interest rate" seems reasonable.

This is a great tool and I really appreciate the work and time that went into it (and then the answering of all the questions!). I am trying to figure out how to get my state taxes into the calculations correctly; currently it's showing zero. The instructions page seems to refer me to M30-31 on the calculations tab but that seems to connect to everything else so don't want to play with it blindly. Is there a place to put in my state that I'm missing?

This is a great tool and I really appreciate the work and time that went into it (and then the answering of all the questions!). I am trying to figure out how to get my state taxes into the calculations correctly; currently it's showing zero. The instructions page seems to refer me to M30-31 on the calculations tab but that seems to connect to everything else so don't want to play with it blindly. Is there a place to put in my state that I'm missing?

(Found it - it's H-35 if you're following along at home!)

Yes, the instructions should say: - State+local taxes are estimated at some % of "State Taxable". - Here, "State Taxable" = Federal AGI - Federal Exemptions. Note: no deductions. - You can change the % in cell H35. If you want, you can add a formula for your state in cell G35.

They will when the next version is loaded. Meanwhile, I'll have a conversation with the quality control department....

I finally started using the case study sheet, and I've run into some things I was confused on.

Under Mortgage do I put the total I pay there or just principle OR principle and Interest?

You put the mortgage inputs - amount financed (cell E57), length of loan (F57), and interest rate (I57) - and the spreadsheet calculates the monthly payment (that includes both principle and interest). If you want to estimate "time to FI" or refine the mortgage interest estimate then you can input the current principal balance (G57) and the spreadsheet will calculate years remaining on the mortgage.

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I see a section for property tax, and for house insurance, but is the mortgage insurance part for PMI?

Yes.

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Since I'm confused on that part I'm also not seeing where to find deductible Mortgage Interest in the tax section.

It is estimated in cell G34 based on entries in G57 and I57.

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And lastly, that I can think of at the moment, Where is the compare to AMT part? I can't for the life of me spot it, but maybe I need to use the search tool.

I have one question, though - does the FI calculator at the bottom of the Calculations sheet take into account the growth of qualified dividends (B26) over time? If not, how can I take into account the compounding of dividend reinvesting while adjusting the increased taxation?

I have one question, though - does the FI calculator at the bottom of the Calculations sheet take into account the growth of qualified dividends (B26) over time?

Somewhat. The projected taxable account balance at retirement (cell B160) does include compounded growth. It doesn't include year-to-year changes in income, such as wages or dividends.

Yeah, that's exactly what I meant. I assumed that the default 5% return rate was after subtracting dividends, since most here typically assume 7% inflation-adjusted returns that include ~2% dividends, and thus B26 has to be adjusted every year.

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If not, how can I take into account the compounding of dividend reinvesting while adjusting the increased taxation?

Read and examine the case thoroughlyTake notes, highlight relevant facts, underline key problems.Focus your analysisIdentify two to five key problemsWhy do they exist?How do they impact the organization?Who is responsible for them?Uncover possible solutionsReview course readings, discussions, outside research, your experience.Select the best solutionConsider strong supporting evidence, pros, and cons: is this solution realistic?Drafting the CaseOnce you have gathered the necessary information, a draft of your analysis should include these sections:

IntroductionIdentify the key problems and issues in the case study.Formulate and include a thesis statement, summarizing the outcome of your analysis in 1–2 sentences.BackgroundSet the scene: background information, relevant facts, and the most important issues.Demonstrate that you have researched the problems in this case study.AlternativesOutline possible alternatives (not necessarily all of them)Explain why alternatives were rejectedConstraints/reasonsWhy are alternatives not possible at this time?Proposed SolutionProvide one specific and realistic solutionExplain why this solution was chosenSupport this solution with solid evidenceConcepts from class (text readings, discussions, lectures)Outside researchPersonal experience (anecdotes)RecommendationsDetermine and discuss specific strategies for accomplishing the proposed solution.If applicable, recommend further action to resolve some of the issuesWhat should be done and who should do it?

That's amazing, @Clara Smith. You've not only managed to completely miss the point of the thread, you've also plagiarised your response.

Is there a line to enter current savings and current emergency fund amounts? I see a line for taxable savings and a monthly line for emergency fund.Thank you!

Good question. The answer requires some explanation.

The line for emergency fund contributions (cell B100 in the current version) is there to help people understand current cash flow. E.g., if they think their current e-fund balance is too low and want to understand how far down the Investment Order they can go this year.

The line for taxable savings (cell B173 in the current version) is there for an estimate of "time to Financial Independence (FI)" . It assumes that amount is invested in things riskier, thus ultimately yielding some return above inflation, than an e-fund would be.

The spreadsheet ignores the e-fund balance, making the assumption that it merely grows with inflation and no effect on time to FI.